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Explain the effect that each of the following situations

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Explain the effect that each of the following situations will have on the size of the multiplier. a. Firms have excess i

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Explain the effect that each of the following situations will have on the size of the multiplier. a. Firms have excess inventories as the economy begins to recover from a recession. b. Expansionary policy causes the price level to increase. c. People expect a $500 tax rebate to be a one-time occurrence. d. The government decreases spending, and the Fed does not change the money supply. e. The economy expands, and income taxes are progressive. f. The government extends unemployment benefits as a response to a lingering recession

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